{"operation":"document","citation":"CPF 52021023NOPV","title":"HARVEST ALASKA, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-08-20","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.614(c)(1), 192.739(a), 192.745(a), 192.937(a), 192.937(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021023nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021023nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021023nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52021023NOPV","body":"Notice of Probable Violation involving HARVEST ALASKA, LLC. PHMSA's enforcement data identifies the cited regulations as 192.614(c)(1),  192.739(a),  192.745(a),  192.937(a),  192.937(b). The case was opened on 2021-08-20 and is reported as closed as of 2022-04-04. Proposed civil penalty: $76,300. Assessed civil penalty: $73,900. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52021023NOPV_Final Order_03282022_(20-174865).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021023NOPV/52021023NOPV_Final%20Order_03282022_(20-174865).pdf\n\n52021023NOPV_Final Order_03282022_(20-174865)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021023NOPV/52021023NOPV_Final%20Order_03282022_(20-174865)_text.pdf\n\n52021023NOPV_Operator Response to Notice_09172021_(20-174865).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021023NOPV/52021023NOPV_Operator%20Response%20to%20Notice_09172021_(20-174865).pdf\n\n52021023NOPV_PCP_08202021_(20-174865).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021023NOPV/52021023NOPV_PCP_08202021_(20-174865).pdf\n\n52021023NOPV_PCP_08202021_(20-174865)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021023NOPV/52021023NOPV_PCP_08202021_(20-174865)_text.pdf\n\n52021023NOPV_Final Order_03282022_(20-174865)_text.pdf\n\nMarch 28, 2022\nVIA ELECTRONIC MAIL TO: skolassa@harvestmidstream.com\nMr. Sean Kolassa\nPresident\nHarvest Alaska, LLC\n1111 Travis Street\nHouston, Texas 77002\nRe: CPF No. 5-2021-023-NOPV\nDear Mr. Kolassa:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and assesses a reduced civil penalty of $73,900. The penalty payment terms are set\nforth in the Final Order. This enforcement action closes automatically upon receipt of payment.\nService of the Final Order by e-mail is effective upon the date of transmission and\nacknowledgement of receipt as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\nMr. Andre Limmer, Vice President, Harvest Midstream Alaska,\nalimmer@harvestmidstream.com\nMr. Harold Colgrove, Manager, Integrity & Regulatory Compliance, Harvest Midstream\nAlaska, harold.colgrove@harvestmidstream.com\nCONFIRMATION OF RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nHarvest Alaska, LLC, ) CPF No. 5-2021-023-NOPV\nan affiliate of Harvest Midstream Co., )\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom October 19, 2020, through January 22, 2021, pursuant to 49 U.S.C. § 60117, a\nrepresentative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office\nof Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and\nrecords of Harvest Alaska, LLC (Harvest Alaska or Respondent), an affiliate of Harvest\nMidstream Company. Harvest Midstream Company transports natural gas, crude oil, and natural\ngas liquids across more than 6,000 miles of pipeline in Alaska, Colorado, Louisiana, New\nMexico, Ohio, Pennsylvania, and Texas.1\nAs a result of the inspection, the Director, Western Region, Office of Pipeline Safety (Director),\nissued to Respondent, by letter dated August 20, 2021, a Notice of Probable Violation and\nProposed Civil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that Harvest Alaska committed two violations of 49 C.F.R. Part 192 and proposed\nassessing a civil penalty of $76,300 for the alleged violations. The Notice also included an\nadditional three warning items pursuant to 49 C.F.R. § 190.205, which required no further action,\nbut warned the operator to correct the probable violations or face possible future enforcement\naction\nHarvest Alaska responded to the Notice by letter dated September 17, 2021 (Response).2\nRespondent contested several of the allegations, offered additional information in response to the\nNotice, and requested the civil penalty be reduced or withdrawn. Respondent did not request a\nhearing and therefore has waived its right to one.\n1 Our Services, HARVEST MIDSTREAM, https://www harvestmidstream.com/operations/ (last visited January 20,\n2022).\n2 Response to PHMSA CPF No. 5-2021-023 Notice of Probable Violation, Proposed Civil Penalty and Proposed\nCompliance Order, dated September 17, 2021 (Response), on file with PHMSA.\n\n\n\nCPF No. 5-2021-023-NOPV\nPage 2\nFINDINGS OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 192, as follows:\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.739(a), which states:\n§ 192.739 Pressure limiting and regulating stations: Inspection and\ntesting.\n(a) Each pressure limiting station, relief device (except rupture discs),\nand pressure regulating station and its equipment must be subjected at\nintervals not exceeding 15 months, but at least once each calendar year, to\ninspections and tests to determine that it is –\n(1) In good mechanical condition;\n(2) Adequate from the standpoint of capacity and reliability of operation\nfor the service in which it is employed;\n(3) Except as provided in paragraph (b) of this section, set to control or\nrelieve at the correct pressure consistent with the pressure limits of\n§ 192.201(a); and\n(4) Properly installed and protected from dirt, liquids, or other\nconditions that might prevent proper operation.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.739(a) by failing to inspect and test\nPressure Safety Valve (PSV)-10056 and PSV-002 at the required intervals. Specifically, the\nNotice alleged that in two instances, calendar years 2017 and 2018, Respondent failed to inspect\nand test PSV-10056. Respondent’s only record of testing and inspection of PSV-10056 was dated\nAugust 9, 2019. The Notice also alleged in one additional instance that Respondent failed to\ninspect and test PSV-002. The records showed inspections of PSV-002 occurred on January 9,\n2019, and July 9, 2020, but no testing occurred in the 2018 calendar year or in the previous year.\nIn its Response, Harvest Alaska argued PSV-10056 is not needed to protect the Beluga Pipeline\nfrom the upstream producer; therefore, it is not subject to PHMSA regulations. Respondent\nexplained that PSV-10056 is located on production piping upstream of the tie-in to the\ntransmission system and is owned and operated by the upstream production operator.\nRespondent contended that the flow path is actually protected by PSV X-028 and all block\nvalves between the production facility tie-in and PSV X-028 are locked open.\nHaving reviewed the record, I disagree with Harvest Alaska’s argument that PSV-10056 is not\nsubject to PHMSA regulation. PSV-10056 qualifies as a pressure limiting device and is\ntherefore required to be inspected under § 192.739. While Respondent asserted that PSV X-028,\nlocated upstream from the Beluga River Unit (BRU) facility, protects the Beluga Transmission\nPipeline from overpressure, I note that the Beluga Transmission Pipeline is a bi-directional\npipeline. PSV X-028 is the primary overpressure protection for gas flows from the West CIGGS\nsources, and PSV-10056 is the primary overpressure protection for gas flow from the BRU\nCompressor. Respondent cannot rely solely on PSV X-028 by locking open all the transmission\nline block valves, because if there was an accidental closure of one of the pipeline block valves,\nwhich would be “some other type of failure” under § 192.195(a), PSV X-028 would not protect\nthe pipeline as required by § 192.195(a). Transmission line block valves, which may be operated\n\n\n\nCPF No. 5-2021-023-NOPV\nPage 3\nfor multiple reasons, do not fall under the pressure safety valve provisions of § 192.199. The\noverpressure protection of the Beluga Transmission Pipeline at Kaloa Junction is adequate from\na capacity standpoint and protects the pipeline for its typical operational flow path from Kaloa\nJunction to BRU. But it does not protect the Beluga Transmission Pipeline when the BRU\ncompression is operational. This protection is provided by PSV-10056. Therefore, PSV-10056\nmust be operational per § 192.169 and annually inspected per § 192.739.\nRespondent also argued that PSV-002’s pigging separator was blinded out and not placed into\nservice until the Beluga Pipeline ILI run in July 2019. Harvest Alaska provided additional\ndocumentation showing that PSV-002 was inspected on August 18, 2019.\nRegarding PSV-002, the Region reviewed Respondent’s argument and the document submitted\nin support of it. Based on this review, the Region recommended removing reference to PSV-002\nfrom the violation and reducing the number of instances of the violation from three to two. I\nagree. Therefore, I withdraw the alleged violation with respect to PSV-002.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.\n§ 192.739(a) by failing to inspect and test PSV-10056 at the required intervals.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 192.745, which states:\n§ 192.745 Valve maintenance: transmission lines.\n(a) Each transmission line valve that might be required during any\nemergency must be inspected and partially operated at intervals not\nexceeding 15 months, but at least once each calendar year.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.745 by failing to partially operate\nvalve ID: X-002 (SDV-023) at Kaloa Junction during the inspections on June 29, 2017, and June\n29, 2018.\nIn its Response, Harvest Alaska did not contest the allegation, but stated that it self-identified\nand rectified the non-compliance events of 2017 and 2018 prior to the 2019 inspection.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.\n§ 192.745 by failing to partially operate valve ID: X-002 (SDV-023) at Kaloa Junction during\nthe inspections on June 29, 2017, and June 29, 2018.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations.3\n3 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.\n\n\n\nCPF No. 5-2021-023-NOPV\nPage 4\nIn determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I\nmust consider the following criteria: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; any effect that the penalty may have on its ability to continue\ndoing business; the good faith of Respondent in attempting to comply with the pipeline safety\nregulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA.\nIn addition, I may consider the economic benefit gained from the violation without any reduction\nbecause of subsequent damages, and such other matters as justice may require. The Notice\nproposed a total civil penalty of $76,300 for the violations cited above.\nItem 2: The Notice proposed a civil penalty of $37,600 for Respondent’s violation of 49 C.F.R.\n§ 192.739(a), for failing to inspect and test PSV-10056 and PSV-002 at the required intervals.\nRespondent requested the civil penalty be withdrawn or reduced on grounds that PSV-10056 and\nPSV-002 were not subject to the inspection requirement in § 192.739(a) at the time in question.\nAs discussed above, with regard to PSV-10056, I disagree and found two instances of violation\nof § 192.739(a) for calendar years 2017 and 2018. However, with regard to PSV-002, I agree\nwith Respondent and withdraw the single alleged instance of violation for that valve. Therefore,\nI reduce the number of instances of the violation from three to two. Respondent did not provide\nany additional arguments for mitigation. Based upon the foregoing, I assess Respondent a\nreduced civil penalty of $35,200 for violation of 49 C.F.R. § 192.739(a).\nItem 3: The Notice proposed a civil penalty of $38,700 for Respondent’s violation of 49 C.F.R.\n§ 192.745, for failing to failing to partially operate valve ID: X-002 (SDV-023) at Kaloa\nJunction during the inspections on June 29, 2017, and June 29, 2018. Harvest Alaska did not\nrequest or provide argument for mitigation of the proposed penalty. Based upon the foregoing, I\nassess Respondent a civil penalty of $38,700 for violation of 49 C.F.R. § 192.745.\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $73,900.\nPayment of the civil penalty must be made within 20 days after receipt of the Final Order.\nFederal regulations (49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer\nthrough the Federal Reserve Communications System (Fedwire), to the account of the U.S.\nTreasury. Detailed instructions are contained in the enclosure. Questions concerning wire\ntransfers should be directed to: Financial Operations Division (AMK-325), Federal Aviation\nAdministration, Mike Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City,\nOklahoma 79169. The Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $73,900 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\n\n\n\nCPF No. 5-2021-023-NOPV\nPage 5\nWARNING ITEMS\nWith respect to Items 1, 4, and 5, the Notice alleged probable violations of Part 192, but\nidentified them as warning items pursuant to § 190.205. The warnings were for:\n49 C.F.R. § 192.614(c)(1) (Item 1) ─ Respondent’s alleged failure to include in\nits excavator mailing list excavators known to engage in excavation activities in\nthe area;\n49 C.F.R. § 192.937(b) (Item 4) ─ Respondent’s alleged failure to provide a\ncomprehensive and in-depth examination of performance in its 2018 and 2019\nIntegrity Management Program Annual Effectiveness Reviews; and\n49 C.F.R. § 192.939(a) (Item 5) ─ Respondent’s alleged failure to assesses the\ncovered segment of ECIGGS within the prescribed interval.\nHarvest Alaska requested withdrawal of Item 1, arguing that § 192.614 does not specify\nalignment between one-call tickets and the damage prevention mailing list, or define “normally”\nin “persons who normally engage in excavation activities in the area” for the purpose of their\ninclusion on an excavator mailing list. Respondent did not contest the warnings for Items 4 or 5.\nUnder § 190.205, PHMSA does not adjudicate warning items to determine whether a probable\nviolation occurred. If OPS finds a violation of any of these items in a subsequent inspection,\nRespondent may be subject to future enforcement action.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of the Final\nOrder by Respondent. Any petition submitted must contain a brief statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically stays\nthe payment of any civil penalty assessed. The other terms of the order, including any corrective\naction, remain in effect unless the Associate Administrator, upon request, grants a stay. If\nRespondent submits payment of the civil penalty, the Final Order becomes the final\nadministrative decision and the right to petition for reconsideration is waived.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nMarch 28, 2022\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":16704}